Maruthi car decorators imported car accessories from China. They seek your opinion on the following issues : (i) 10 audio systems were pilfered before unloading and before the proper officer have made an order for cleara

Liability of Customs Duty on Pilfered Goods: (i) 10 audio systems were pilfered before unloading and before the proper officer made an order for clearance for home consumption: As per Section 13 of the Customs Act, 1962, if any imported goods are pilfered after the unloading thereof and before the proper officer has made an order for clearance for home consumption or deposit in a warehouse, the importer shall not be liable to pay the import duty in respect of such goods. In this case, the audio systems were pilfered before unloading . The import duty is leviable only when the import is completed, which means the goods have become part of the mass of goods within the country. Since the pilferage occurred before unloading, the import process was not complete, and the goods had not entered the customs area in India. Therefore, duty is not leviable on the 10 audio systems pilfered before unloading.